For the upcoming tax season, the IRS Form 1040 has changed forever. This goes back to the Tax Cuts and Jobs Act (TCJA), where Americans with simple tax affairs can file their taxes on a form that’s the size of a large postcard.
However, it should be said that online tax filers may not notice any changes at all, so they won’t need to do anything different.
The IRS has worked in collaboration with many tax preparation partners and brands to ensure these changes go through as easily as possible.… Read the rest
Here’s what you need to know about Medicare taxes.
The Medicare tax is what’s known as a type of payroll tax. It’s paid by both employers and employees, so it’s your responsibility to withhold the correct amount from the salaries of your employees. You also need to make a matching contribution.
The Federal Insurance Contributions Act (FICA) is made up of a combination of Social Security and Medicare.
FICA differs from income taxes because it’s a flat tax of 15.3%… Read the rest
If you happen to have a home office, you may be able to use it as a deduction when it comes to the cost of running your home business.
The problem with the home office deduction is it’s a complicated issue. Due to the fact it’s open to abuse, the IRS came down hard on people years ago.
But if you’re eligible, you should absolutely claim the deduction. It looks like a hassle, but it’s not as difficult as you might think to claim.… Read the rest
Do you have one or more children who are under 17 living with you throughout the year? Then you may be able to get a big refund through the Child Tax Credit on your tax return this coming tax year.
If you can’t get this credit, then you could get the Additional Child Tax Credit instead, assuming you meet these qualifications.
What is the Child Tax Credit?
This nonrefundable tax credit is available for each qualifying child.
You can claim the child tax credit when you file your yearly tax return.… Read the rest